The net asset value of EfTEN Real Estate Fund AS shares as of 30.06.2023

The net asset value per share of EfTEN Real Estate Fund AS was 20.3464 euros as of June 30, 2023, and the EPRA NRV was 21.0135 euros. Both the net asset value, calculated according to IFRS, and EPRA NRV fell by 2.1% in June due to the decrease in the fund's investment properties fair value. Semi-annual asset valuations were carried out as usual by the independent valuator, Colliers International.

The fair value of the fund's investment properties fell by 1.7% (a total of 6.18 million euros) as a result of the revaluations. Specifically, the value of office sector assets fell by 2.8%, the value of logistics sector assets fell by 2.3%, and the value of shopping centers fell by 0.4%. The valuation decrease is largely related to the increase in the weighted average cost of capital (WACC) used to discount cash flows due to the rise in EURIBOR over the past six months. The WACC has increased by an average of 0.4 percentage points compared to the valuations in December 2022.

The consolidated rental income of EfTEN Real Estate Fund AS was 2,547 thousand euros in June, which is 7 thousand euros less than in May. The decrease in rental income is mainly due to the expiration of one lease in the office building at Pärnu mnt 102, resulting in increased vacancy by 1000m2 of rental space. The fund's consolidated EBITDA was 2,191 thousand euros in June, remaining at the same level as the previous month.

Interest expenses increased to 667 thousand euros in June, an increase of 29 thousand euros. The weighted average interest rate of the fund's loans was 5.44% at the end of June (compared to 5.13% in May). All of the fund's loans are being serviced as usual, and the cash flow from the business operations of all real estate investments exceeds the monthly loan amortization and interest payments.

During the first half of 2023, the fund earned a consolidated rental income of 15.15 million euros (compared to 6.6 million euros in 2022) and EBITDA of 13.02 million euros (compared to 5.83 million euros in 2022). This year's consolidated rental income includes rental income from investment properties acquired through the merger with EfTEN Kinnisvarafond AS, totaling 8.15 million euros. This represents a 5.5% increase compared to the same period last year for EfTEN Kinnisvarafond AS. In terms of investment properties that have been on the fund's balance sheet for at least two consecutive years (Like-for-like), the rental income has increased by 4.7% compared to last year.

During the first six months of this year, EfTEN Real Estate Fund AS has earned 43.88 cents per share (compared to 48.13 cents in the previous year) of potential gross dividend for investors. The potential gross dividend per share has decreased by 8.8% compared to last year, primarily as a result of the increase in EURIBOR.

The fund's consolidated cash balance was 12,616 thousand euros as of June 30, 2023, and the cash balance decreased by 2,056 thousand euros in June. The companies within the group placed a total of 2,480 thousand euros in term deposits of up to 6 months with interest rate 2,75% per annum.

Marilin Hein
CFO
Phone +372 6559 515
E-mail: marilin.hein@eften.ee

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• EREF_III_reports_monthly_06_2023